BBC News

Starbucks agrees to pay more corporation tax

The coffee shop giant Starbucks has attempted to defuse the row about its tax arrangements, by volunteering to pay more money over the next two years.

The firm was condemned by MPs last month for "immoral" tax avoidance, and now says it will pay about ten million pounds a year in corporation tax.

Campaigners dismissed the move, while politicians said firms such as Amazon and Google should follow suit.

Starbucks' UK managing director Kris Engskov explained the reasoning behind it.